PPP Manufacturing Company decided to expand further by purchasing STU Company. The balance sheet of WWW Company as of December 31, 2015 was a follows:

STU Company

Balance Sheet

December 31 , 2015

Assets			Liabilities and Equities
Cash	$210,000		Accounts Payable	$375,000
Receivables	$550,000		Common Stock	$800,000
Inventory	$275,000		Retained Earnings	$885,000
PP&E (net)	$1,025,000
Total Assets	$2,060,000		Total Liabilities and Equities	$2,060,000

An appraisal, agreed to by the parties, indicated that fair value of the acquired inventory was $370,000 and that the fair value of the acquired PP&E assets was $1,325,000. The fair value of the acquired receivables is equal to the amount reported on the balance sheet. The agreed-upon purchase price was $2,275,000, and this amount was paid in cash to the previous owners of STU Company.

Instructions:

Determine the amount of goodwill (if any) implied in the purchase price of $2,275,000. Show your calculations. Using the attached T-account template, prepare the acquiring company's journal entry to record the acquisition. Do not debit investments; rather debit and credit the assets acquired and the liabilities assumed.

No. 11 = ASSETS Non-current Assets Current Assets Property, Plant & Equipment Investments LIABILITIES Intangible Assets/Other Current Liabilities Non-Current Liabilities + EQUITY Contributed Capital Earned Capital Accumulated OCI